Isaac Co. sells merchandise on credit to Sonar Co in the amount of $9,600. The invoice is dated on April 15 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount?

Question

Quizplus · Accepted Answer

To calculate the discount, we first need to find the amount of the discount rate. The discount rate is 1% since the terms are 1/15.

Next, we can calculate the discount amount:

Discount = Invoice amount x Discount rate 
Discount = $9,600 x 0.01 
Discount = $96

Therefore, the amount of the discount is $96.

To find the last day the invoice can be paid with the discount, we add 15 days to the invoice date:

April 15 + 15 days = April 30

Therefore, the invoice must be paid by April 30 in order to take advantage of the discount.

The correct answer, therefore, is C.

Isaac Co Sells Merchandise on Credit to Sonar Co in the the Amount